"This exburban (past the suburbs) home is $15,000 less than a somewhat comparable (but less desirable :( ) house in town. If your car gets just 15 miles to the gallon, and gas goes way up to $6 a gallon, then you can afford to commute for over 12 YEARS and STILL save money!"Here's the reasoning if you want to duplicate it with your own numbers: Car gets 15 mpg, commute is 20 miles per day. 20 miles ÷ 15mpg = 1.33 gallons of gas per day to commute. At $6 per gallon, the daily commute costs $7.98 The house outside town is $15,000 cheaper than the one close to town. Assuming purchase price has 80% financing at 4½ % interest over 30 years, the interest on the $12,000 financed will cost the buyer $9,888.81. So, saving $15,000 on the purchase price REALLY saves the buyer $24,888.81. Savings of $24,888.81 ÷ $7.98 daily commute costs = 3,118 days of commuting. If someone works 50 weeks a year, they commute 250 days a year. 3,118 days of commuting ÷ 250 days per year = 12.47 years of commuting. So, under these assumptions, getting a house $15,000 more cheaply than the one in town, and commuting 20 miles per day, makes great economic sense.
Share this post
- 0 comment
- Tags: Broker Business Development, condos, lofts, Make More Money!!!, real estate sales, suburban